New job lifts IJM Corp order book to near all-time high of RM9.3b

This article first appeared in The Edge Financial Daily, on September 5, 2018.
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KUALA LUMPUR: IJM Corp Bhd has bagged a RM505 million contract to construct the superstructure works of Affin Bank Bhd’s new 47-storey corporate headquarters in the upcoming international financial district Tun Razak Exchange (TRX).

In a filing with Bursa Malaysia yesterday, IJM Corp said its wholly-owned subsidiary IJM Construction Sdn Bhd yesterday accepted the letter of award from Affin Bank.

The new project will boost IJM Construction’s outstanding order book to a near all-time high of RM9.3 billion.

The completion period of the project is 26 months, which is expected to be completed by December 2020. The office building, which has a gross floor area of approximately 76,600 sq m and is built over a land area of 1.25 acres (0.5ha), said IJM Corp in a separate statement yesterday.

“The award of Affin Bank’s new headquarters is recognition of IJM’s impressive construction and development credentials. We are delighted to be working with yet another esteemed banking industry name. This contract reinforces our track record of building innovative and iconic high-rise projects in the city centre,” said IJM Corp managing director and chief executive officer Datuk Soam Heng Choon.

In November last year, the group also announced the development of  27-storey office tower Menara Prudential in TRX worth RM500 million. Last week, Soam said the development was 93% complete and was on track to be ready by early 2019.

Some of the company’s ongoing prime office tower projects  include HSBC’s new Malaysian headquarters and IJM-owned Menara Prudential, Equatorial Plaza in Jalan Sultan Ismail, UOB Malaysia’s Tower 2 in Jalan Raja Laut and Uptown 8 in Damansara Uptown.

For the first quarter ended June 30, IJM Corp posted a lower net profit of RM62.7 million compared with RM121.16 million partly due to a wider foreign exchange loss of RM71 million versus RM3.6 million in the previous corresponding quarter. Revenue came in slightly lower at RM1.44 billion against RM1.46 billion previously.

IJM Corp’s share price has taken a beating amid concerns over a slowdown in infrastructure building activities as the new government is reviewing several megaprojects.

Over the past year, the stock has fallen as much as 41.57% from RM3.27. It closed at RM1.91 yesterday with a market capitalisation of RM6.94 billion.